Title: Announcement regarding issuance of Disciplinary Board Resolution No. (22/2025 Disciplinary Board) (41 and 42/2022 Authority) and imposition of a fine against: Massaleh Investments Company, for Violating the Rules of Securities Activities and Registered Persons, and Clients’ Funds and Clients’ Assets

Announcement regarding issuance of Disciplinary Board Resolution No. (22/2025 Disciplinary Board) (41 and 42/2022 Authority) and imposition of a fine against: Massaleh Investments Company, for Violating the Rules of Securities Activities and Registered Persons, and Clients’ Funds and Clients’ Assets

For the following reasons:
First: The provision of Article (3-2-11) of Module Five (Securities Activities and Registered Persons) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
It was proven to the CMA that the Company did not fill the vacant Registered Employment Positions during the specified legal period to date.

Second: The Provision of Paragraph (B) of Appendix No. (4) “Mechanism of Submitting Nomination and Registration Application” of Module Five (Securities Activities and Registered Persons) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

It was proven to the CMA the Massaleh Investment Company failed to obtain the CMA’s prior approval for the nomination applications for membership in the company’s Board of Directors before holding the company’s General Assembly on 24/04/2024 and electing a Board Member and a reserve Member.
 

Third: The Provision of Article (2-5) of Module Seven “Clients’ Funds and Clients’ Assets” of the Executive Bylaws of Law No. 7 of 2010 and their amendments, in addition to CMA Circular No. (6) of 2016 on the Annual Report of Licensed Persons’ Auditors Concerning their Compliance with the Provisions of the aforementioned Article, where it specified March 1 of every year to submit the annual report:

It was proven to the CMA that Massaleh Investment Company failed to assign an auditor to ensure the compliance of the licensed person with the rules stipulated in Module Seven (Clients’ Funds and Clients’ Assets) of the Executive Bylaws of Law No. 7 of 2010 on violating the provisions of the previously mentioned Article No. (2-5), and Circular No. (6) of 2016.

The Resolution included the infliction of the following penalty: -
" Levying a Fine on Massaleh Investment Company in the amount of KWD 3,000 (three thousand Dinars) for each violation of the first and second violations, and the amount of KWD 5000 (five thousand Dinars) for the third attributed violation”.
 
In this regard, the CMA emphasizes the implementation of CMA Law and its Executive Bylaws on all persons dealing in securities activities, and urges them to comply with these Laws in order to promote investors' confidence, create a sound investment environment, and implement the Law according to the principles of fairness, transparency, and integrity in line with the best international practice.